Coronavirus

MPs call for Pubs Code reform

The group are calling for an overhaul of Regulation 7 of the code, which allows a tied establishment to seek a rent review if an unforeseen event should occur

A group of MPs are calling on the government to amend The Pubs Code 2016 to address consequences for businesses resulting from the Covid-19 pandemic.

Led by Tracy Brabin MP, the group is specifically requesting change regarding Regulation 7 of the code, which allows a tied establishment to seek a rent review if an unforeseen event should occur.

In the letter addressed to Paul Scully, minister for small businesses, consumers and labour markets, the group is requesting that Regulation 7 is amended to cover rental agreements held by large pub-owning businesses which have decimated during the pandemic.

The campaign is supported by trade groups Forum for British Pubs and CAMRA.

Brabin said: “Over a year of repeated lockdowns, the business of running a pub has become unprofitable, yet the rental agreements held by large pub-owning businesses have not changed to reflect this fact, and routine rent reviews are only held every fifth of every contract.

“Regulation 7 of The Pubs Code 2016 should have addressed this problem, as it enables a tied tenant to request a rent assessment should an unforeseen “trigger event” occur, which decreases the level of trade continuously for a period of 12 months.”

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